14/05/2024 14:42
Issuance activity: Tomorrow, MinFin is scheduled to
auction CZ5.0bn of 2032 bonds, CZK3.0bn of 2034 bonds and CZK1.0bn of 2037
bonds. We estimate that almost 33% of CZGB’s annual gross issuance has been
covered so far this year. However, we see a risk, that the state budget deficit
could eventually exceed the planned CZK252.0bn as it already reached CZK153.1bn
ytd in April. All in all, we think it is still unlikely that the pace of
issuance will ease over the year.
17/05/2024 11:12
Colt CZ announced that it has completed the
acquisition of 100% of the shares of Sellier & Bellot. Colt is
acquiring a truly strategic asset that will complement its portfolio. As expected, the transaction price consists
of 350m USD (CZK7.96 billion) in cash and the issuance of 13,476,440 new
Colt CZ shares. The new shares were issued on May 16 at a price of
EUR24.1066 (CZK595.8, or CZK8bn in total). S&B will also be
consolidated as of May 16. We estimate that the S&B
acquisition is valued at about 9x EV/EBITDA. This is slightly below Colt's multiple. Colt's leverage is expected to
increase to 2.6x
(net debt / EBITDA) following the acquisition.